Dangote Cement Plc has formally launched the first tranche of its N500 billion Commercial Paper (CP) Issuance Programme, opening a N100 billion offer on Monday, 17 November 2025.
The offer, scheduled to close on Wednesday, 19 November 2025, marks a significant milestone for Nigeria’s leading cement producer, reflecting the company’s strong market position and financial stability.
The CPs are structured in two tranches: a 181-day Series 1 with a 16.10% discount rate, which implies a yield of 17.50%, and a 265-day Series 2 with a 16.70% discount rate, translating to a 19.00% yield. Minimum subscription is set at N50 million, with further subscriptions allowed in multiples of N1,000. According to the pricing documents, proceeds from the issuance will be directed toward meeting the company’s working capital needs, supporting operations across its extensive Pan-African footprint.
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Dangote Cement’s financial track record over the past five years underscores its ability to deliver consistent results. Revenue surged from N1.03 trillion in 2020 to N3.58 trillion in 2024, reflecting a remarkable compound annual growth rate of 37%. Profit after tax more than doubled over the same period, climbing from N276 billion to N503.25 billion, signaling sustained operational efficiency and effective cost management.
The company’s performance through the first nine months of 2025 has been equally impressive. Revenue reached N3.15 trillion, up 22% from N2.56 trillion in the same period in 2024, while profit before tax soared 150% to N1.04 trillion from N406.4 billion. Profit after tax more than doubled to N743.3 billion from N279.1 billion in 9M 2024. Operating cash flows grew to N1.29 trillion, more than doubling the N532 billion recorded in the prior year. The company has also reduced its borrowings by 47%, from N2.5 trillion in December 2024 to N1.32 trillion, with its interest coverage ratio improving to 4.4 from 3.3, indicating a strengthened capacity to service debt.
However, Dangote Cement experienced a decline in production volume in 9 months of 2025, suggesting that pricing, rather than volume growth, has been the main driver of performance. Analysts caution that sustained reliance on pricing could present a risk if competitive or market pressures affect margins.
Rating agencies continue to recognize Dangote Cement’s strong market position and operational resilience, though with some caution. DataPro reaffirmed the company’s AA long-term and A1 short-term ratings, highlighting its strong brand, solid earnings track record, and experienced management team. At the same time, they noted risks, including low asset utilization, foreign-exchange exposure, and challenges across certain Pan-African markets.
GCR Ratings, in October 2025, downgraded the company to A+(NG) from AA+(NG), not due to deteriorating performance but because of the group-cap effect tied to its parent company, Dangote Industries Limited. GCR, however, acknowledged the company’s robust cash flows and solid earnings, forecasting continued improvement in leverage metrics by the end of 2025.
For investors, the CP issuance offers an attractive short-term investment opportunity. With strong revenue growth, surging profits, and robust operating cash flows, Dangote Cement demonstrates a capacity to deliver steady returns. The reduction in borrowings and improved leverage provide additional reassurance regarding the security of the CPs. At the same time, the yields of 17.5% for the shorter tranche and 19% for the longer tranche make the offering competitive relative to other fixed-income instruments available in Nigeria’s capital markets.
While the company’s overall fundamentals are strong, investors are mindful of certain risks. For instance, the decline in production volume highlights potential exposure to pricing pressures, which could impact future profitability. Additionally, operations in Pan-African markets carry inherent foreign-exchange and geopolitical risks that could influence earnings.
Overall, the launch of Dangote Cement’s N100 billion Commercial Paper tranche represents a significant opportunity for investors seeking short-term, high-yield instruments backed by one of Nigeria’s most financially sound and strategically positioned industrial companies. The strong cash flow generation, disciplined debt management, and proven profitability pinpoint the company’s capacity to navigate challenging market conditions while delivering competitive returns.